Great Eastern Holdings Limited · SGX:G07
Great Eastern — Q4 2017 and FY2017 Earnings Presentation
13 slides from Great Eastern's earnings presentation, Feb 13, 2018
Slide 1: Financial Results for Q4-17 and FY-17 Supplementary Information
GREAT EASTERN HOLDINGS LIMITED Financial Results for Q4-17 and FY-17 Supplementary Information 13 February 2018
Slide 2: Overview of Q4-17 and FY-17 Financial Results
Overview of Q4-17 and FY-17 Financial Results S$’m Q4-17 Q4-16 ∆ FY-17 FY-16 ∆ Total Weighted New Sales1&4 471.7 346.5 +36% 1,321.0 1,077.7 +23% New Business Embedded Value2 to 4 204.4 151.6 +35% 548.3 469.6 +17% Operating Profit (net of tax)4 & 5 156.1 113.6 +37% 598.7 502.2 +19% from Insurance Bus
Slide 3: FY-17 Key Highlights
FY-17 Key Highlights • Group’s TWNS was 23% higher at S$1,321.0 million for FY-17, underpinned by continuing growth in Singapore. • Group’s NBEV was 17% higher at S$548.3 million for FY-17, driven by higher sales in Singapore and higher margin in Malaysia. • Operating profit at S$598.7 million for F
Slide 4: Total Weighted New Sales (TWNS) – By Market
Total Weighted New Sales (TWNS) – By Market Higher Group’s TWNS of S$471.7 million for Q4-17 and S$1,321.0 million for FY-17: • Driven by strong growth in Singapore (both agency and bancassurance). +36% +23% 1321.0 18.8 1077.7 15.3 362.1 TWNS – By 371.4 Market 471.7 (S$ m) 346.5 5.3 940.1 282.9 258.
Slide 5: Singapore TWNS – By Channel Mix
Singapore TWNS – By Channel Mix Higher TWNS in Singapore of S$344.4 million for Q4-17 and S$940.1 million for FY-17: • Fuelled by strong sales in both agency and bancassurance channels. +36% +69% 940.1 17.3 691.0 17.2 486.6 Singapore 384.7 344.4 TWNS – By 2.8 Channel 202.9 225.7 150.8 157.1 179.6 20
Slide 6: Malaysia TWNS – By Channel Mix
Malaysia TWNS – By Channel Mix Lower TWNS in Malaysia of S$122.0 million for Q4-17 and S$362.1 million for FY-17: • Lower sales of regular premium Participating products through agency channel. -3% -12% 371.4 362.1 10.0 12.4 Malaysia 22.6 25.5 TWNS – By Channel Mix (S$ m) 138.2 122.0 338.8 324.2 2.6
Slide 7: New Business Embedded Value (NBEV) – By Market
New Business Embedded Value (NBEV)- By Market Higher NBEV of S$204.4 million for Q4-17 and S$548.3 million for FY-17; NBEV margin of 43.3% for Q4-17 and 41.5% for FY-17: • NBEV growth was contributed by the increase in sales coupled with higher margin in Malaysia. • Lower margin amid tactical produc
Slide 8: Breakdown of Profit from Insurance Business
Breakdown of Profit from Insurance Business Profit from insurance business of S$236.1 million for Q4-17 and S$823.0 million for FY-17: • Higher operating profit in the Singapore Non-Participating Insurance Business. • Higher non-operating profit due to narrowing of credit spreads and gain from equit
Slide 9: Operating Profit from Insurance Business – by Fund
Operating Profit from Insurance Business – by Fund Operating Profit from Insurance Business of S$156.1 million for Q4-17 and S$598.7 million for FY-17: • Higher profit for FY-17 as a result of the Company repositioning its assets and liabilities in the Singapore Non-Participating insurance business.
Slide 10: Profit from Shareholders’ Fund
Profit from Shareholders’ Fund Profit from Shareholders’ Fund of S$190.6 million for Q4-17 was higher than Q4-16: • Higher realised gain on sale of investments in Q4-17 (mainly from equities and collective investment schemes) as compared to same quarter last year. +141% +165% 344.4 88.5 143.1 190.6
Slide 11: Group Profit Attributable to Shareholders
Group Profit Attributable to Shareholders Profit attributable to shareholders was S$423.6 million for Q4-17 and S$1,156.5 million for FY-17: • Higher operating and non-operating profit from insurance business. • Higher profit from shareholders’ fund due to higher realised gain on sale of investments
Slide 12: Embedded Value
Embedded Value • FY-17 embedded value of S$13.4b or an embedded value per share of S$28.29 was a 14% growth from FY-16. • Value of In-Force Business increased by 26% over FY-16. • 5 year Compound Annual Growth Rate of 9%. 13,389 Embedded 11,694 Value 11,001 10,436 (S$ m) 9,214 8,605 7,654 6,054 5,24
Slide 13: Thank You
THANK YOU 13
Great Eastern Holdings — Q4 2017 and FY2017 Earnings Presentation on 6ix